Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Sep. 27, 2019 | Dec. 31, 2018 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity File Number | 333-150952 | ||
Entity Registrant Name | China Media Inc. | ||
Entity Central Index Key | 0001434674 | ||
Entity Tax Identification Number | 46-0521269 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Address, Address Line One | Room 10128, No. 269-5-1 Taibai South Road | ||
Entity Address, Address Line Two | Yanta District, Xi'an City | ||
Entity Address, City or Town | Shaan'xi Province | ||
Entity Address, Country | CN | ||
Entity Address, Postal Zip Code | 710068 | ||
City Area Code | 86 | ||
Local Phone Number | 298765-1114 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Elected Not To Use the Extended Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,532,486 | ||
Entity Common Stock, Shares Outstanding | 39,750,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 2,603 | $ 7,179 |
Prepaid and other receivable, net of allowance of $118,145 and $122,544 at June 30, 2019 and 2018, respectively | 3,780 | 3,920 |
Total current assets | 6,383 | 11,099 |
Fixed assets, net | 14,736 | 15,285 |
Film costs | 755,395 | |
Total assets | 21,119 | 781,779 |
Current liabilities | ||
Accounts payable | 8,924 | 9,145 |
Accrued liabilities and other payable | 287,592 | 257,099 |
Accrued liabilities - related party | 73,270 | 55,752 |
Due to related parties | 717,974 | 597,726 |
Total current liabilities | 1,087,760 | 919,722 |
Total liabilities | 1,087,760 | 919,722 |
Stockholders' equity | ||
Common stock, $0.00001 par value, 180,000,000 shares authorized; 39,750,000 shares issued and outstanding at June 30, 2019 and 2018, respectively | 398 | 398 |
Additional paid-in capital | 11,323,440 | 11,298,300 |
Accumulated other comprehensive income | 630,561 | 619,693 |
Accumulated deficit | (13,021,040) | (12,056,334) |
Total stockholders' equity | (1,066,641) | (137,943) |
Total liabilities and stockholders' equity | $ 21,119 | $ 781,779 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 39,750,000 | 39,750,000 |
Common stock, shares outstanding | 39,750,000 | 39,750,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||
Selling, general and administrative | $ 206,553 | $ 990,921 |
Depreciation and amortization expense | 1,347 | |
Impairment loss | 732,966 | |
Total operating expenses | 939,519 | 992,268 |
Other income (expense) | ||
Interest expense | 25,187 | 26,277 |
Net income before income taxes | (964,706) | (1,018,545) |
Income taxes benefit | ||
Net loss | (964,706) | (1,018,545) |
Comprehensive income | ||
Net loss | (964,706) | (1,018,545) |
Foreign currency translation gain (loss) | 10,868 | 36,640 |
Comprehensive income (loss) | $ (953,838) | $ (981,905) |
Net income per common share, basic and diluted | $ (0.02) | $ (0.03) |
Weighted average number of shares outstanding-basic and diluted | 39,750,000 | 39,750,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Deficit) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total |
Beginning Balance at Jun. 30, 2017 | $ 398 | $ 11,272,079 | $ 583,053 | $ (11,037,789) | $ 817,741 |
Beginning Balance (in shares) at Jun. 30, 2017 | 39,750,000 | ||||
Foreign currency translation adjustment | 36,640 | 36,640 | |||
Imputed interest on related party loan | 26,221 | 26,221 | |||
Net income | (1,018,545) | (1,018,545) | |||
Ending Balance at Jun. 30, 2018 | $ 398 | 11,298,300 | 619,693 | (12,056,334) | (137,943) |
Ending Balance (in shares) at Jun. 30, 2018 | 39,750,000 | ||||
Foreign currency translation adjustment | 10,868 | 10,868 | |||
Imputed interest on related party loan | 25,140 | 25,140 | |||
Net income | (964,706) | (964,706) | |||
Ending Balance at Jun. 30, 2019 | $ 398 | $ 11,323,440 | $ 630,561 | $ (13,021,040) | $ (1,066,641) |
Ending Balance (in shares) at Jun. 30, 2019 | 39,750,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS OPERATING ACTIVITIES | ||
Net loss | $ (964,706) | $ (1,018,545) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Imputed interest | 25,140 | 26,221 |
Depreciation expense | 1,347 | |
Bad debt expense | 779,439 | |
Impairment loss | 732,966 | |
Changes in operating assets and liabilities: | ||
Prepaid and other receivable | 546 | |
Accounts payable | 39,982 | (24) |
Accrued liabilities and other payable | 19,645 | 20,600 |
Net cash provided by (used in) operating activities | (146,973) | (190,416) |
CASH FLOW FINANCING ACTIVITIES | ||
Proceeds from related parties | 142,628 | 183,971 |
Net cash used in financing activities | 142,628 | 183,971 |
Effect of exchange rate changes on cash | (231) | 425 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (4,576) | (6,020) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR | 7,179 | 13,199 |
CASH AND CASH EQUIVALENTS AT END OF THE YEAR | 2,603 | 7,179 |
SUPPLEMENTAL INFORMATION: | ||
Interest paid | ||
Income taxes paid |
Description of Business
Description of Business | 12 Months Ended |
Jun. 30, 2019 | |
Description Of Business | |
Description of Business | NOTE 1. Description of Business China Media Inc. (the “Company”, “China Media”), formerly Protecwerx Inc., was incorporated in the State of Nevada on October 16, 2007. The Company does not conduct any substantive operations of its own; rather, it conducts its primary business operations through Vallant Pictures Entertainment Co., Ltd., its wholly owned subsidiary incorporated under the laws of the British Virgin Islands, which in turn, conducts its business through Xi’an TV Media Co. Ltd. (“Xi’An TV”). Effective control over Xi’An TV was transferred to the Company through the series of contractual arrangements without transferring legal ownership in Xi’An TV. As a result of these contractual arrangements, the Company maintained the ability to approve decisions made by Xi’An TV and was entitled to substantially all of the economic benefits of Xi’An TV. Xi’An TV was incorporated in Xi’An, Shaan’xi Province, People’s Republic of China (“PRC”) and is in the business of investing, producing and developing film and television programming for the Chinese market. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Summary Of Significant Accounting Policies | |
Summary of Significant Accounting Policies | NOTE 2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and Xi’An TV, which is a variable interest entity with the Company as the primary beneficiary. In accordance with United States generally accepted accounting principles (“U.S. GAAP”) regarding “Consolidation of Variable Interest Entities”, the Company identifies entities for which control is achieved through means other than through voting rights (a "variable interest entity" or "VIE") and determines when and which business enterprise, if any, should consolidate the VIE. The Company evaluated its participating interest in Xi’An TV and concluded it is the primary beneficiary of Xi’An TV, a variable interest entity. The Company consolidated Xi’An TV and all significant intercompany transactions and balances have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, including estimates of ultimate revenues and ultimate costs of film and television products, the amount of receivables that ultimately will be collected, the potential outcome of future tax consequences of events that have been recognized in the Company’s financial statements and loss contingencies. Actual results could differ from those estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or results of operations will be affected. Estimates are made based on past experience and other assumptions that management believes are reasonable under the circumstances, and management evaluates these estimates on an ongoing basis. Concentration of Credit Risk The Company maintains cash balances at various financial institutions in the PRC which do not provide insurance for amounts on deposit. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk in this area. The Company operates principally in the PRC and grants credit to its customers in this geographic region. Although the PRC is economically stable, it is always possible that unanticipated events in foreign countries could disrupt the Company’s operations. Fair Value of Financial Instruments Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The fair value of financial instruments, which consist of cash and cash equivalents, prepaid and other receivable, accounts payable, accrued liabilities and other payable, were estimated to approximate their carrying values due to the immediate or relatively short maturity of these instruments. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits with banks and liquid investments with an original maturity of three months or less. Fixed Assets Fixed assets are recorded at cost and depreciated using the straight-line method, with an estimated 5% salvage value of original cost, over the estimated useful lives of the assets as follows: Asset Category Estimated Useful Life Electronic Equipment 5 years Communication Equipment 3 years Machinery Equipment 5 years Automobiles 10 years Office Furniture 5 years Film Costs The Company capitalizes film costs in accordance with ASC 926. Film costs are stated at the lower of cost, less accumulated amortization, or fair value. Production overhead, a component of film costs, includes allocable costs of individuals or departments with exclusive or significant responsibility for the production of films. Substantially all of the Company’s resources are dedicated to the production of its films. Capitalized production overhead does not include selling, general and administrative expenses. Interest expense on funds invested in production is capitalized into film costs until production is completed. In addition to the films being produced, costs of productions in development are capitalized as development film costs in accordance with the provisions of the ASC and are transferred to film production costs when a film is set for production. In the event a film is not set for production within three years from the time the first costs are capitalized or the film is abandoned, all such costs are generally expensed. Once a film is released, film costs are amortized and participations and residual costs are accrued on an individual film basis in the proportion that the revenue during the period for each film (“Current Revenue”) bears to the estimated remaining total revenue to be received from all sources for each film (“Ultimate Revenue”) as of the beginning of the current fiscal period as required by the ASC. The amount of film costs that is amortized each period will depend on the ratio of Current Revenue to Ultimate Revenue for each film for such period. The Company makes certain estimates and judgments of Ultimate Revenue to be received for each film based on information received from its distributor and its knowledge of the industry. Ultimate Revenue does not include estimates of revenue that will be earned beyond ten years of a film’s initial theatrical release date. Unamortized film costs are evaluated for impairment each reporting period on a film-by-film basis in accordance with the requirements of the ASC. If estimated remaining net cash flows are not sufficient to recover the unamortized film costs for that film, the unamortized film costs will be written down to fair value determined using a net present value calculation. Impairment of Long-Lived Assets The Company reviews its long-lived assets used in operations for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. Income Taxes The Company accounts for income tax under the provisions of ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns. Deferred income taxes are recognized for all significant temporary differences between tax and financial statements bases of assets and liabilities. Valuation allowances are established against net deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company adopted the accounting standard for uncertainty in income taxes which requires a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return (including a decision whether to file or not file a return in a particular jurisdiction). Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under generally accepted accounting principles are recorded as an element of stockholders’ equity but are excluded from net income (loss). During the years presented, other comprehensive income (loss) includes changes in cumulative translation adjustment from foreign currency translation. Foreign Currency Translation The Company uses United States dollars (“U.S. dollar” or “US$” or “$”) for financial reporting purposes. The subsidiaries within the Company maintain their books and records in Renminbi (“RMB”), the currency of China, the economic environment in which the Company’s primary subsidiaries conduct their operations. Transactions denominated in foreign currencies are translated into U.S. dollar at exchange rate in effect on the date of the transactions. Exchange gains or losses on transactions are included in earnings. The financial statements of the Company are translated into United States dollars in accordance with U.S. GAAP, using year-end rates of exchange for assets and liabilities, and average rates of exchange for the period for revenues, costs, and expenses and historical rates for equity. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income. The exchange rates used for foreign currency translation were as follows (US$1 = RMB): Period Covered Balance Sheet Date Rate Average Rate Year ended June 30, 2019 6.8656 6.8216 Year ended June 30, 2018 6.6191 6.5052 Earnings (Loss) Per Share The Company calculates net income (loss) per share in accordance with ASC 260, Earnings Per Share. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during each period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. As of June 30, 2019 and 2018, the Company had no common stock equivalents that could potentially dilute future earnings per share. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” and issued subsequent amendments to the initial guidance or implementation guidance including ASU 2017-13, 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01 (collectively, including ASU 2016-02, “ASC 842”). Under ASC 842, lessees will be required to recognize all leases at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The standard is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company will adopt the standard on July 1, 2019 on a modified retrospective basis and will not restate comparable periods. The Company will elect the package of practical expedients permitted under the transition guidance, which allows the Company to carry forward the historical lease classification, the assessment whether a contract is or contains a lease and initial direct costs for any leases that exist prior to adoption of the new standard. The Company will also elect the practical expedient not to separate lease and non-lease components for certain classes of underlying assets and the short-term lease exemption for contracts with lease terms of 12 months or less. The Company estimates that approximately $66,717 would be recognized as total right-of-use assets and total lease liabilities in the consolidated balance sheets as of July 1, 2019. However, the Company does not expect the adoption to have a material impact on the consolidated statements of operations and comprehensive loss and cash flows. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” to improve the effectiveness of disclosures in the notes to financial statements related to recurring or nonrecurring fair value measurements by removing amounts and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The new standard requires disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect the new standard to have a material impact on its consolidated financial statements. In March 2019, the FASB issued ASU 2019-02, “Improvements to Accounting for Costs of Films and License Agreements for Program Materials,” in order to align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. ASU 2019-02 also requires that an entity reassess estimates of the use of a film in a film group and account for any changes prospectively. In addition, ASU 2019-02 requires that anentity test films and license agreements for program material for impairment at a film group level when the film or license agreements are predominantly monetized with other films and license agreements. ASU 2019-02 is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements. Going Concern The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has suffered recurring losses from operations and has a working capital deficit as of June 30, 2019. The Company also generated negative operating cash flows for the year ended June 30, 2019. These matters, among others, raise substantial doubt about our ability to continue as a going concern. While the Company's cash position may not be significant enough to support the Company's daily operations, management intends to raise additional funds by way of cooperation with other film and television producers, obtaining loans from shareholders and borrowing from Dean Li, the President and Chief Executive Officer of the Company, to fund operations. The consolidated financial statements do not include any adjustments that may result should the Company be unable to continue as a going concern. Reclassification Certain amounts as of June 30, 2018 were reclassified for comparative presentation purposes. These reclassifications had no impact on net earnings and cash flows. |
Prepaid and Other Receivable
Prepaid and Other Receivable | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Prepaid and Other Receivable | NOTE 3. Prepaid and Other Receivable Prepaid and other receivable consist of the following: June 30, 2019 2018 Prepaid and other receivable $ 121,925 $ 126,464 Less: Bad debt allowance (118,145 ) (122,544 ) Prepaid and other receivable, net $ 3,780 $ 3,920 The bad debt expense recorded for the years ended June 30, 2019 and 2018 was $0 and $10,823, respectively. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fixed Assets | NOTE 4. Fixed Assets Fixed assets consist of the following: June 30, Asset Category 2019 2018 Electronic Equipment $ 158,297 $ 164,192 Communication Equipment 623 647 Machinery Equipment 85,053 88,221 Automobiles 46,485 48,217 Office Furniture 2,170 2,251 292,628 303,528 Less: Accumulated depreciation (277,892 ) (288,243 ) Fixed assets, net $ 14,736 $ 15,285 Depreciation expense for the years ended June 30, 2019 and 2018 was $0 and $1,347, respectively. |
Film Costs
Film Costs | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Film Costs | NOTE 5. Film Costs Film costs consist of the following: June 30, 2019 2018 In development - Film $ 732,966 $ 755,395 Less: Impairment loss allowance (732,966 ) — Film costs, net $ — $ 755,395 In July 2015, the Company entered into an agreement to invest RMB 5 million (approximately $752,627 at the time of investment) in a film that is produced by Beijing Huaxia Star Media Co., Ltd., a related party, and the payment was made in August 2015. As of June 30, 2019, the production of the film has not started; the Company reserved full allowance of RMB 5 million against the film costs. Also see Note 6. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions | |
Related Party Transactions | NOTE 6. Related Party Transactions From time to time, the Company borrowed loans from Dean Li, the President and Chief Executive Officer of the Company. As of June 30, 2019 and 2018, the Company owed Dean Li $717,974 and $597,726, respectively. The loans borrowed from Mr. Dean Li are non-secured, free of interest with no specified maturity date. The imputed interests are assessed as an expense to the business operation and an addition to the paid-in-capital and calculated based on annual interest rate in the range of 3.42% - 4.43% with reference to one-year loan. On January 1, 2018, the Company renewed a lease agreement with Shaanxi Gede Trading Co., Ltd. (“Gede”)to lease its main office for a monthly rent of RMB11,167 (approximately $1,637). Gede’s Legal Representative and Chief Executive Officer is a major shareholder of the Company. The lease had a term of five years and expired on December 31, 2022. As of June 30, 2019 and 2018, the Company owed Gede rent payable of $73,270 and $55,752, respectively. Also see Note 8. In July 2015, the Company entered into an agreement to invest RMB 5 million (approximately $752,627at the time of investment) in a film that is produced by Beijing Huaxia Star Media Co., Ltd. and the payment was made in August 2015. Dean Li, the President and Chief Executive Officer of the Company, holds 13% equity interest in Beijing Huaxia Star Media Co., Ltd. The film costs were fully impaired during the year ended June 30, 2019. On December 11, 2018, the Company provided a guarantee for Shaanxi Hengtai Mingji Trading Co., Ltd.’s (“Hengtai”) two-year loan borrowed from Chang’An Bank in the amount of RMB 210,532,513 (approximately $30,616,700 when borrowed). The loan was pledged by Hengtai’s receivable from Shaanxi Senzhiyuan Industrial Co., Ltd. (“Senzhiyuan”), a related party of the Company. Also see Note 8. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7. Income Taxes China Media is incorporated in the State of Nevada and is subject to the United States Federal and state income tax at a statutory rate of 21%. No provision for the U.S. Federal income taxes has been made as the Company had no taxable income in this jurisdiction for the reporting periods. Vallant is incorporated in the British Virgin Islands (“BVI”) and under the current laws of the BVI, is not subject to income taxes. Before December 31, 2012, Xi’An TV’s taxable income was assessed at 10% of its taxable revenue. Starting from January 1, 2013, the tax authority determined that Xi’An TV should be taxed at 25% of its taxable income until further notice. No provision for income taxes has been made as Xi’An TV had no taxable income for the years ended June 30, 2019 and 2018. The following table reconciles the Company’s statutory tax rates to its effective tax rate as a percentage of income before income taxes: For The Years Ended June 30, 2019 2018 U.S. statutory rate 21.0 % 21.0 % Foreign income not recognized in the U.S. -21.0 % -21.0 % PRC preferential enterprise income tax rate 25.0 % 25.0 % Valuation allowance 51.0 % -24.7 % Effect of expenses not deductible for tax purposes -76.0 % -0.3 % Effective tax rate 0 % 0 % The components of the Company’s deferred income tax assets are set forth below: June 30, 2019 June 30, 2018 Deferred tax assets Net operating losses $ 186,088 $ 276,110 Total deferred income tax assets 186,088 276,110 Less: Valuation allowance (186,088 ) (276,110 ) Net deferred income tax assets $ — $ — On December 22, 2017, U.S. tax reform legislation known as the Tax Cuts and Jobs Act (the “Act”) was signed into law. With the enactment of the Act, the Company’s financial results for the year ended June 30, 2019 included a re-valuation of the U.S. deferred tax assets and corresponding valuation allowance at the new lower 21% U.S. federal statutory tax rate. There was no impact of the re-valuation to the net income because it was fully offset by the valuation allowance that was recorded against the deferred tax asset. The Company has net taxable operating loss carry forwards of approximately $744,351 for the year ended June 30, 2019. The PRC income tax laws allow the enterprises to offset their future taxable income with taxable operating losses carried forward in a 5-year period. The management is uncertain whether the Company will generate sufficient taxable PRC statutory income in the near future and it is more likely than not that not all of the deferred income tax assets will be realized. Consequently, a full valuation allowance has been established for deferred income tax assets as of June 30, 2019. The tax authority of the PRC conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises have completed their relevant tax filings, hence the Company’s tax filings may not be finalized. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company’s tax filings which may lead to additional tax liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8. Commitments and Contingencies On December 11, 2018, the Company entered into a guarantee agreement to provide guarantee for Shaanxi Hengtai Mingji Trading Co., Ltd.’s (“Hengtai”) two-year loan borrowed from Chang’An Bank in the amount of RMB 210,532,513 (approximately $30,616,700 when borrowed). The guarantee period is two years starting from the date the payment is due. The loan is pledged by Hengtai’s receivable from Shaanxi Senzhiyuan Industrial Co., Ltd. (“Senzhiyuan”) in the amount of RMB 226,000,000 and 50 million equity interest in Hengtai owned by Hengtai’s two shareholders. The controlling shareholder of Senzhiyuan is also a principal shareholder of the Company. The Company’s main office is leased from Gede, a related party. The Company’s commitments for minimum lease payments under the non-cancelable operating lease are as follows: For The Years Ended June 30, 2020 $ 19,645 2021 19,645 2022 19,645 2023 9,822 2024 and thereafter — Total: $ 68,757 Rent expense for the years ended June 30, 2019 and 2018 was $19,645 and $20,600, respectively. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | NOTE 9. Subsequent Event From July 1, 2019 to September 26, 2019, the Company borrowed loans in total of RMB 176,877 (approximately $25,763) from Dean Li, the President and Chief Executive Officer of the Company. The loans borrowed from Mr. Dean Li are non-secured, free of interest with no specified maturity date. The annual interest rate in the range of 3.42% - 4.43% with reference to one-year loan. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure Summary Of Significant Accounting Policies Policies Abstract | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and Xi’An TV, which is a variable interest entity with the Company as the primary beneficiary. In accordance with United States generally accepted accounting principles (“U.S. GAAP”) regarding “Consolidation of Variable Interest Entities”, the Company identifies entities for which control is achieved through means other than through voting rights (a "variable interest entity" or "VIE") and determines when and which business enterprise, if any, should consolidate the VIE. The Company evaluated its participating interest in Xi’An TV and concluded it is the primary beneficiary of Xi’An TV, a variable interest entity. The Company consolidated Xi’An TV and all significant intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, including estimates of ultimate revenues and ultimate costs of film and television products, the amount of receivables that ultimately will be collected, the potential outcome of future tax consequences of events that have been recognized in the Company’s financial statements and loss contingencies. Actual results could differ from those estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or results of operations will be affected. Estimates are made based on past experience and other assumptions that management believes are reasonable under the circumstances, and management evaluates these estimates on an ongoing basis. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash balances at various financial institutions in the PRC which do not provide insurance for amounts on deposit. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk in this area. The Company operates principally in the PRC and grants credit to its customers in this geographic region. Although the PRC is economically stable, it is always possible that unanticipated events in foreign countries could disrupt the Company’s operations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The fair value of financial instruments, which consist of cash and cash equivalents, prepaid and other receivable, accounts payable, accrued liabilities and other payable, were estimated to approximate their carrying values due to the immediate or relatively short maturity of these instruments. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits with banks and liquid investments with an original maturity of three months or less. |
Fixed Assets | Fixed Assets Fixed assets are recorded at cost and depreciated using the straight-line method, with an estimated 5% salvage value of original cost, over the estimated useful lives of the assets as follows: Asset Category Estimated Useful Life Electronic Equipment 5 years Communication Equipment 3 years Machinery Equipment 5 years Automobiles 10 years Office Furniture 5 years |
Film Costs | Film Costs The Company capitalizes film costs in accordance with ASC 926. Film costs are stated at the lower of cost, less accumulated amortization, or fair value. Production overhead, a component of film costs, includes allocable costs of individuals or departments with exclusive or significant responsibility for the production of films. Substantially all of the Company’s resources are dedicated to the production of its films. Capitalized production overhead does not include selling, general and administrative expenses. Interest expense on funds invested in production is capitalized into film costs until production is completed. In addition to the films being produced, costs of productions in development are capitalized as development film costs in accordance with the provisions of the ASC and are transferred to film production costs when a film is set for production. In the event a film is not set for production within three years from the time the first costs are capitalized or the film is abandoned, all such costs are generally expensed. Once a film is released, film costs are amortized and participations and residual costs are accrued on an individual film basis in the proportion that the revenue during the period for each film (“Current Revenue”) bears to the estimated remaining total revenue to be received from all sources for each film (“Ultimate Revenue”) as of the beginning of the current fiscal period as required by the ASC. The amount of film costs that is amortized each period will depend on the ratio of Current Revenue to Ultimate Revenue for each film for such period. The Company makes certain estimates and judgments of Ultimate Revenue to be received for each film based on information received from its distributor and its knowledge of the industry. Ultimate Revenue does not include estimates of revenue that will be earned beyond ten years of a film’s initial theatrical release date. Unamortized film costs are evaluated for impairment each reporting period on a film-by-film basis in accordance with the requirements of the ASC. If estimated remaining net cash flows are not sufficient to recover the unamortized film costs for that film, the unamortized film costs will be written down to fair value determined using a net present value calculation. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets used in operations for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. |
Income Taxes | Income Taxes The Company accounts for income tax under the provisions of ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns. Deferred income taxes are recognized for all significant temporary differences between tax and financial statements bases of assets and liabilities. Valuation allowances are established against net deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company adopted the accounting standard for uncertainty in income taxes which requires a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return (including a decision whether to file or not file a return in a particular jurisdiction). |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under generally accepted accounting principles are recorded as an element of stockholders’ equity but are excluded from net income (loss). During the years presented, other comprehensive income (loss) includes changes in cumulative translation adjustment from foreign currency translation. |
Foreign Currency Translation | Foreign Currency Translation The Company uses United States dollars (“U.S. dollar” or “US$” or “$”) for financial reporting purposes. The subsidiaries within the Company maintain their books and records in Renminbi (“RMB”), the currency of China, the economic environment in which the Company’s primary subsidiaries conduct their operations. Transactions denominated in foreign currencies are translated into U.S. dollar at exchange rate in effect on the date of the transactions. Exchange gains or losses on transactions are included in earnings. The financial statements of the Company are translated into United States dollars in accordance with U.S. GAAP, using year-end rates of exchange for assets and liabilities, and average rates of exchange for the period for revenues, costs, and expenses and historical rates for equity. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income. The exchange rates used for foreign currency translation were as follows (US$1 = RMB): Period Covered Balance Sheet Date Rate Average Rate Year ended June 30, 2019 6.8656 6.8216 Year ended June 30, 2018 6.6191 6.5052 |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company calculates net income (loss) per share in accordance with ASC 260, Earnings Per Share. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during each period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. As of June 30, 2019 and 2018, the Company had no common stock equivalents that could potentially dilute future earnings per share. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” and issued subsequent amendments to the initial guidance or implementation guidance including ASU 2017-13, 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01 (collectively, including ASU 2016-02, “ASC 842”). Under ASC 842, lessees will be required to recognize all leases at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The standard is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company will adopt the standard on July 1, 2019 on a modified retrospective basis and will not restate comparable periods. The Company will elect the package of practical expedients permitted under the transition guidance, which allows the Company to carry forward the historical lease classification, the assessment whether a contract is or contains a lease and initial direct costs for any leases that exist prior to adoption of the new standard. The Company will also elect the practical expedient not to separate lease and non-lease components for certain classes of underlying assets and the short-term lease exemption for contracts with lease terms of 12 months or less. The Company estimates that approximately $66,717 would be recognized as total right-of-use assets and total lease liabilities in the consolidated balance sheets as of July 1, 2019. However, the Company does not expect the adoption to have a material impact on the consolidated statements of operations and comprehensive loss and cash flows. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” to improve the effectiveness of disclosures in the notes to financial statements related to recurring or nonrecurring fair value measurements by removing amounts and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The new standard requires disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect the new standard to have a material impact on its consolidated financial statements. In March 2019, the FASB issued ASU 2019-02, “Improvements to Accounting for Costs of Films and License Agreements for Program Materials,” in order to align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. ASU 2019-02 also requires that an entity reassess estimates of the use of a film in a film group and account for any changes prospectively. In addition, ASU 2019-02 requires that an entity test films and license agreements for program material for impairment at a film group level when the film or license agreements are predominantly monetized with other films and license agreements. ASU 2019-02 is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements. |
Going Concern | Going Concern The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has suffered recurring losses from operations and has a working capital deficit as of June 30, 2019. The Company also generated negative operating cash flows for the year ended June 30, 2019. These matters, among others, raise substantial doubt about our ability to continue as a going concern. While the Company's cash position may not be significant enough to support the Company's daily operations, management intends to raise additional funds by way of cooperation with other film and television producers, obtaining loans from shareholders and borrowing from Dean Li, the President and Chief Executive Officer of the Company, to fund operations. The consolidated financial statements do not include any adjustments that may result should the Company be unable to continue as a going concern. |
Reclassification | Reclassification Certain amounts as of June 30, 2018 were reclassified for comparative presentation purposes. These reclassifications had no impact on net earnings and cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure Summary Of Significant Accounting Policies Tables Abstract | |
Schedule of Fixed Assets | Fixed assets are recorded at cost and depreciated using the straight-line method, with an estimated 5% salvage value of original cost, over the estimated useful lives of the assets as follows: Asset Category Estimated Useful Life Electronic Equipment 5 years Communication Equipment 3 years Machinery Equipment 5 years Automobiles 10 years Office Furniture 5 years |
Exchange rates used for foreign currency translation | The exchange rates used for foreign currency translation were as follows (US$1 = RMB): Period Covered Balance Sheet Date Rate Average Rate Year ended June 30, 2019 6.8656 6.8216 Year ended June 30, 2018 6.6191 6.5052 |
Prepaid and Other Receivable (T
Prepaid and Other Receivable (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Schedule of Prepaid and Other Receivable | Prepaid and other receivable consist of the following: June 30, 2019 2018 Prepaid and other receivable $ 121,925 $ 126,464 Less: Bad debt allowance (118,145 ) (122,544 ) Prepaid and other receivable, net $ 3,780 $ 3,920 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Fixed Assets | Fixed assets consist of the following: June 30, Asset Category 2019 2018 Electronic Equipment $ 158,297 $ 164,192 Communication Equipment 623 647 Machinery Equipment 85,053 88,221 Automobiles 46,485 48,217 Office Furniture 2,170 2,251 292,628 303,528 Less: Accumulated depreciation (277,892 ) (288,243 ) Fixed assets, net $ 14,736 $ 15,285 |
Film Costs (Tables)
Film Costs (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Schedule of Film Cost | Film costs consist of the following: June 30, 2019 2018 In development - Film $ 732,966 $ 755,395 Less: Impairment loss allowance (732,966 ) — Film costs, net $ — $ 755,395 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Reconciliation | The following table reconciles the Company’s statutory tax rates to its effective tax rate as a percentage of income before income taxes: For The Years Ended June 30, 2019 2018 U.S. statutory rate 21.0 % 21.0 % Foreign income not recognized in the U.S. -21.0 % -21.0 % PRC preferential enterprise income tax rate 25.0 % 25.0 % Valuation allowance 51.0 % -24.7 % Effect of expenses not deductible for tax purposes -76.0 % -0.3 % Effective tax rate 0 % 0 % |
Schedule of Deferred Tax Assets | The components of the Company’s deferred income tax assets are set forth below: June 30, 2019 June 30, 2018 Deferred tax assets Net operating losses $ 186,088 $ 276,110 Total deferred income tax assets 186,088 276,110 Less: Valuation allowance (186,088 ) (276,110 ) Net deferred income tax assets $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies | |
Commitment of Lease | The Company’s main office is leased from Gede, a related party. The Company’s commitments for minimum lease payments under the non-cancelable operating lease are as follows: For The Years Ended June 30, 2020 $ 19,645 2021 19,645 2022 19,645 2023 9,822 2024 and thereafter — Total: $ 68,757 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Electronic Equipment | |
Useful life of Assets | 5 years |
Communication Equipment | |
Useful life of Assets | 3 years |
Machinery Equipment | |
Useful life of Assets | 5 years |
Automobiles | |
Useful life of Assets | 10 years |
Office Furniture | |
Useful life of Assets | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 2) | Jun. 30, 2019 | Jun. 30, 2018 |
Year Ended RMB : USD exchange rate [Member] | ||
Exchange Rate | 6.8656 | 6.6191 |
Year Average RMB : USD exchange rate [Member] | ||
Exchange Rate | 6.8216 | 6.5052 |
Prepaid and Other Receivable (D
Prepaid and Other Receivable (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Notes to Financial Statements | ||
Prepaid and other receivable | $ 121,925 | $ 126,464 |
Less: Bad debt allowance | (118,145) | (122,544) |
Prepaid and other receivable, net | $ 3,780 | $ 3,920 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Fixed Assets, Gross | $ 292,628 | $ 303,528 |
Less: Accumulated depreciation | (277,892) | (288,243) |
Fixed assets, net | 14,736 | 15,285 |
Electronic Equipment | ||
Fixed Assets, Gross | 158,297 | 164,192 |
Communication Equipment | ||
Fixed Assets, Gross | 623 | 647 |
Machinery Equipment | ||
Fixed Assets, Gross | 85,053 | 88,221 |
Automobiles | ||
Fixed Assets, Gross | 46,485 | 48,217 |
Office Furniture | ||
Fixed Assets, Gross | $ 2,170 | $ 2,251 |
Fixed Assets (Details Narrative
Fixed Assets (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Depreciation expense | $ 1,347 |
Film Costs (Details)
Film Costs (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Notes to Financial Statements | ||
In development - Film | $ 732,966 | $ 755,395 |
Less: Impairment loss allowance | (732,966) | |
Film costs, net | $ 755,395 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Minimum [Member] | ||
Range of Annual Imputed Interest Rate (as a percentage) | 4.43% | |
Maximum [Member] | ||
Range of Annual Imputed Interest Rate (as a percentage) | 3.42% | |
Dean Li, President and Shareholder | ||
Advance from Related party | $ 717,974 | $ 597,726 |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
U.S. statutory rate | 21.00% | 21.00% |
Foreign income not recognized in the U.S. | (21.00%) | (21.00%) |
PRC preferential enterprise income tax rate | 25.00% | 25.00% |
Valuation allowance | 51.00% | (24.70%) |
Effect of expenses not deductible for tax purposes | (76.00%) | (0.30%) |
Effective tax rate | 0.00% | 0.00% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred tax assets | ||
Net operating losses | $ 186,088 | $ 276,110 |
Total deferred income tax assets | 186,088 | 276,110 |
Less: Valuation allowance | (186,088) | (276,110) |
Net deferred income tax assets |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | Jun. 30, 2019USD ($) |
Income Tax Disclosure [Abstract] | |
Net Operating Loss Carryforward | $ 744,351 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Jun. 30, 2019USD ($) |
Disclosure Commitments And Contingencies Details Abstract | |
2020 | $ 19,645 |
2021 | 19,645 |
2022 | 19,645 |
2023 | 9,822 |
2024 and thereafter | |
Total | $ 68,757 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 11, 2018 | |
Rent Expenses | $ 19,645 | $ 20,600 | |
Shaanxi Hengtai Mingji Trading Co., Ltd.s [Member] | |||
Loan Borrowed from Bank | $ 30,616,700 |